Sunday, February 14, 2016

Received this response to the Mid-term exam, from power-lifter/class-struggle militant Broletariat :

"The falling cost
of energy in the US as a result of the shale revolution was supposed to
encourage the relocation of operations from both domestic and foreign
companies. For example numerous energy intensive firms, such as
petrochemical companies, were expected to build new plants in the US as a
result of changing economics."

Overproduction from too much Capital invested into shale
resulted in the falling cost of energy. Therefore more investment into yet more
efficient means of production was expected. Cheaper labour locally doesn't hurt
either (changing economics).

"At the same
time, technological breakthroughs encourage even old economy companies such as
carmakers to expand or shift production to the US to take advantage of the
latest trends."

Sounds like yet more investment which will inevitably result
in overproduction to me. Also cheaper labour prices in US seems to be masked as
the 'latest trend'.

"Quantitative
easing was supposed to encourage manufacturers to expand capital expenditures
given the low cost of capital."

Interest rates are low because the rate of profit is low to
encourage more investment to lead to more overproduction down the road.

Overproduction is an
episodic moment, as opposed to a chronic condition, in capital accumulation.

Overproduction is always threatening valorization. Movement
of Capital everywhere is always trying to dodge overproduction by investing in
more production typically, or by destroying the means of production
exceptionally (perhaps not though, my conception of destroying the means of
production is pretty single-mindedly aware of world wars as an example of such
destruction).

Overproduction is the
overproduction of use values beyond the effective demand of society.

The overproduction of use-values merely implies the
overproduction of the means of production as capital. Capital is unconcerned
with the use-values it may produce, indeed, Capital is unconcerned with even
the exchange-values it may produce, so long as these exchange-values will
enable a favourable rate of profit. The root problem of overproduction is the
overproduction of the means of production as Capital, which you have very well
emphasized. Because there are too many means of production, the value invested
into them cannot be realized except by choking wages or kicking the problem
down the road by investing in more means of production if at all possible.

Overproduction of
capital is separate from overproduction of commodities. It has a
different origin, and different resolution.

I think this was answered sufficiently above. The origins
and resolutions are the same.

Overproduction occurs
when capital runs up against the limits to population growth.

This sounds like an echo of Rosa Luxemburg's saturated
market theses. Needless to say, production is always an act of consumption as
well, so population growth is not the limit. Capital itself is its own limit to
growth.

I think this is patently false as multiple instances of
crisis have occurred before the penetration of capitalism into the whole world.

I'm sorry Arty but I liked my format for answering the
questions better than giving a single essay for my answers in section B. Fail
me if you must :(\

No failure, Brol'-- extra-credit in fact for structuring the responses in the manner you thought best explained the issue. One thing: be careful with this:

Needless to say, production is always an act of consumption as
well, so population growth is not the limit. Capital itself is its own limit to
growth.

Same argument-- "production is always an act of consumption" has been used in an attempt to refute the possibilities of generalized overproduction under capitalism. Productionalways conditions consumption, but is not necessarily coterminous, proportional, coincident with, nor the purpose of, capitalist production.

Sunday, February 07, 2016

Section A: Demystify the following statements
1. "The falling cost of energy in the US as a result of the shale revolution was supposed to encourage the relocation of operations from both domestic and foreign companies. For example numerous energy intensive firms, such as petrochemical companies, were expected to build new plants in the US as a result of changing economics."

2. "At the same time, technological breakthroughs encourage even old economy companies such as carmakers to expand or shift production to the US to take advantage of the latest trends."

3. "Quantitative easing was supposed to encourage manufacturers to expand capital expenditures given the low cost of capital."

Section B: True or False, or both, or each exists in the other

1. Overproduction is an episodic moment, as opposed to a chronic condition, in capital accumulation.

2. Overproduction is the overproduction of use values beyond the effective demand of society.

3. Overproduction of capital is separate from overproduction of commodities. It has a different origin, and different resolution.

4. Overproduction occurs when capital runs up against the limits to population growth.

Wednesday, February 03, 2016

“Part
of what is going on here is they are trying to figure out a way to send this
message to workers that strikes are going to be treated increasingly as criminal
events, which has not really been the case that much over the past 15 years,”
Friedman said."